Oil prices remained stable with concerns of oversupply balanced against rising tensions between Israel and Hezbollah. West Texas Intermediate hovered near $68 per barrel. Equity markets dipped slightly as traders anticipated comments from Federal Reserve Chair Jerome Powell.

Inflation decreased in six German states in September. In North Rhine-Westphalia, the consumer price increase rate fell to 1.5% from 1.7% in August. In Hessen, it declined to 1.2% from 1.5%. Recent inflation figures from France and Spain dropped below the ECB’s 2% target. Analysts polled by Bloomberg expect Germany’s overall inflation to reach 1.8%, marking the first time below 2% since February 2021.

Chinese stocks surged on Monday, marking their largest single-day gains in 16 years, driven by Beijing’s new stimulus measures. The CSI300 blue-chip index has risen nearly 30% from its February low, indicating a potential bull market. The Shanghai Composite Index jumped 8.1% on Monday.

The 6M Euribor decreased with 1 basis point to 3.15% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.35% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

In September, the number of unemployed in Germany slightly increased by 17,000, but the unemployment rate remained stable at 6.0%. Economists had expected an increase of 15,000. The total number of unemployed stood at 2.81 million.

French inflation decreased further in September, according to preliminary figures from Insee, the French statistical office. Inflation fell from 1.8 percent in August to 1.2 percent in September. In July, inflation was 2.3 percent. On a monthly basis, prices dropped by 1.2% in September.

The confidence of Dutch manufacturers improved from -1.9 in August to -1.7 in September. Producers were more optimistic about expected activity, though confidence remains below the long-term average of -1.3.

The 6M Euribor is unchanged at 3.16% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2.36% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Brazil’s central bank raised its 2024 GDP growth forecast to 3.2%, driven by strong household consumption and investment, though inflation risks persist. Policymakers began an open-ended cycle of interest rate hikes, with the Selic rate increased to 10.75%. Rising wages may prompt further rate hikes, with borrowing costs expected to reach 11.75% by 2025.

Oil prices dropped for the second day as Saudi Arabia plans to increase output and Libya moved to revive crude production. West Texas Intermediate fell about 3% to $67 a barrel, with Brent near $71, as Saudi Arabia shifted focus to regaining market share. Additionally, global oil markets are expected to be oversupplied next year, even with extra OPEC+ supply, due to surging production outside the group.

Copper surged above $10,000 a ton and iron ore topped $100 as China’s leaders intensified efforts to boost economic growth, including potential rate cuts and a $142 billion bank capital injection. The rally was fueled by optimism around China’s real estate market and U.S. economic resilience, boosting mining stocks. Despite the gains, policy risks from the U.S. and global growth concerns still cloud the metals’ outlook.

The 6M Euribor decreased with 4 basis points to 3.16% compared to previous business day. The 10Y Swap is unchanged at 2.42% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

The Swedish Riksbank lowered interest rates by 25 basis points to 3.25% and indicated further cuts could occur in the last two meetings of 2024 and possibly one or two more in early 2025. This decision reflects a stronger economy and inflation nearing the target level. The central bank noted that the pace of rate cuts is faster than previously communicated.

Commerzbank, a key lender to Germany’s Mittelstand companies, is resisting UniCredit’s attempt to increase its stake to 21%, despite support from some German SME leaders who believe a merger could improve competitiveness. While political leaders and unions oppose the move, arguing it threatens local jobs and control, business groups highlight the potential benefits of scale and profitability in a cross-border merger. The debate underscores broader concerns about Europe’s competitiveness against global rivals.

Iron ore rallied for a second day, rising nearly 6% on expectations that China’s new stimulus package would boost demand, particularly in the real estate sector. Despite this short-term surge, iron ore remains down over 20% since May due to China’s economic slowdown and ample supply from Brazil and Australia.

The 6M Euribor decreased with 1 basis point to 3.20% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.42% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

The People’s Bank of China acted again on Wednesday, following a series of stimulus measures announced the day before. The interest rate on one-year loans was lowered from 2.3 percent to 2.0 percent.

European stock markets closed higher on Tuesday after the Chinese central bank announced additional stimulus measures. Investors are hopeful that these steps will support companies struggling with weak demand from China. The Stoxx Europe 600 index rose by 0.7 percent to 519.70 points. Germany’s DAX increased by 0.8 percent, closing at 18,996.63 points. France’s CAC 40 climbed 1.3 percent to 7,604.01 points, while the UK’s FTSE gained 0.3 percent to finish at 8,282.76 points.

The increase in U.S. home prices slowed again in July compared to the previous month, according to data released Tuesday by S&P Case-Shiller. In the ten largest cities, home prices increased by 6.8 percent year-on-year, compared to a 7.4 percent rise in June.

The 6M Euribor increased with 3 basis points to 3.21% compared to previous business day. The 10Y Swap is unchanged at 2.40% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

According to a New York Fed report, liquidity in the $27 trillion U.S. Treasury market, the world’s largest government bond market, has returned to levels seen before the Federal Reserve’s 2022 interest rate hikes. Liquidity had previously declined as bond prices fluctuated sharply in response to these rate increases, aimed at controlling inflation. Michael Fleming, researcher at the New York Fed, noted that trading conditions have now improved to levels last observed before the monetary policy tightening cycle.

Oil prices stabilized after their largest weekly gain since April. Brent was little changed, and West Texas Intermediate hovered around $71 a barrel. The strengthening dollar, boosted by weak European economic data, made dollar-priced commodities less attractive. Despite optimism about potential US rate cuts driving a 9% rally in Brent, concerns about declining fuel demand have limited further gains.

Gold reached a new all-time high ahead of upcoming US economic data potentially indicating future Federal Reserve rate cuts. Gold peaked at $2,631.40 an ounce, surpassing the previous record. This surge follows the Fed’s recent rate reduction and is part of a strong year for gold. A 27% rally this year has been driven by central bank purchases and safe-haven demand amid ongoing Middle Eastern and Ukrainian conflicts.

The 6M Euribor decreased with 3 basis points to 3.24% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.45% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Business confidence in the French economy increased slightly in September. According to data from the statistics bureau Insee, the confidence index rose from 97 to 98.

Producer prices in Germany continued to decline at the same pace in August as in July. Data from Destatis, the German statistics bureau, show prices fell by 0.8 percent year-on-year, with energy prices dropping by 4.6 percent.

Retail sales in the United Kingdom rose more sharply in August. According to the British statistics bureau, sales volumes increased by 1.0 percent on a monthly basis, compared to 0.7 percent in July.

The 6M Euribor decreased with 3 basis points to 3.24% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.45% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

US bank stocks surged following the Federal Reserve rate cut, as investors anticipate improved earnings, despite short-term pressure on net interest income. Moody’s warns of initial challenges but predicts longer-term gains for banks as deposit costs adjust and economic growth extends. Regional banks may benefit most from increased demand in commercial real estate as rates decline.
ING, one of the largest banks in the Netherlands, has announced it will halt all new financing for pure-play upstream oil and gas companies developing new fields, as well as financing for new LNG export terminals after 2025. This move aligns with ING’s commitment to accelerating the global transition to a low-carbon economy. Other major European banks, including Barclays, HSBC, and BNP Paribas, have also imposed similar restrictions, while North American regional banks continue to lend to the fossil fuel industry.
Bitcoin surged to a three-week high, rising nearly 5%, as global equities rallied following the Federal Reserve’s 50-basis-point interest rate cut. Traders see the aggressive start to monetary easing as positive for risky assets like Bitcoin, though Fed Chair Jerome Powell signaled future moves would depend on economic data. The correlation between crypto and traditional markets has grown, influenced by broader macroeconomic factors.
The 6M Euribor decreased with 3 basis points to 3.24% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.45% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

The Federal Reserve cut its benchmark interest rate by half a percentage point. The decision leaves the federal funds rate between 4.75% and 5%, with further reductions anticipated. This move aims to sustain the economy and labor market strength while addressing inflation concerns.

UK inflation held steady at 2.2% in August, as reported by the Office for National Statistics, in line with expectations and leaving the possibility open for the Bank of England (BoE) to cut interest rates later in the year. Economists anticipate that the BoE’s Monetary Policy Committee will likely leave rates unchanged in their upcoming meeting but predict rate cuts in November. Despite steady overall inflation, services inflation rose slightly, and wage growth eased, indicating ongoing economic struggles.

India has overtaken China in the MSCI All-Country World index, now holding a 2.33% share versus China’s 2.06%, due to strong economic growth and increased domestic investments. Indian markets have hit record highs with significant IPO activity, while China’s weighting has declined amid economic slowdown. Despite high valuations, investment flows into India are expected to continue.

The 6M Euribor decreased with 4 basis points to 3.27% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.40% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Despite better-than-expected macroeconomic data, such as this afternoon’s U.S. retail sales, financial markets continue to speculate on a 50 basis point rate cut by the Federal Reserve on Wednesday evening.

Asian markets posted predominantly lower prices on Wednesday morning in anticipation of the Federal Reserve’s rate decision. The Nikkei index fell 0.2 percent to 36,130.39 points, while the SSE Composite Index lost 0.5 percent. Markets in Hong Kong and South Korea were closed due to a holiday.

Gold remains at its highest level ever, with technical indicators pointing to further growth. As the market increasingly anticipates a loosening of central bank policies, the outlook for gold appears favorable. Investors have already heavily anticipated lower interest rates. Since the beginning of the year, the price of gold has risen by over 25%, and since early October, it has surged by more than 42%.

The 6M Euribor decreased with 4 basis points to 3.31% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.40% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.